Despite a rebound over the past three months, this financial year looks like being the worst on record for Australian super funds.

The monthly superannuation report from Super Ratings shows the average balanced fund has staged a 6.25 per cent recovery since the end of February, but most funds will probably end the financial year 10 to 14 per cent down on the year before.

Super Ratings' report says it is the worst annual superannuation return since the introduction of compulsory super in 1992.

The average balanced super fund has grown at an annualised rate of just over 5 per cent over the past decade, which is in line with returns from bank term deposits over the same period.

Super Ratings says the results emphasise the need for Australians, particularly those approaching retirement, to take a greater interest in their superannuation options.

"Most (82 per cent of pre-retirees) appear, whether through apathy or intentionally, to sit contentedly in balanced and growth style investment options. Just 3.8 per cent of monies in these options have been moved away from these options in the last 12 months," the report notes.

Super Ratings says those closer to retirement might have benefited from switching to a safer option such as cash as their retirement date approached, but those with many years left in the workforce can afford to take a different approach.

"If you are happy with a variable rate and can take a bit of a short-term hit but are happy to risk this for longer term gain, then a diversified or aggressive portfolio is arguably the way to go," the report says.

"If you need to protect your position in the short-term, then a cash option is your best bet."

Advice many older Australians no doubt wish they had read before their superannuation savings tumbled an average 12.9 per cent in the 12 months to May 31 this year.